Summertime - day of the sun-drenched skin, juicy melon slices water and slippers. The last thing you probably want to think about are your taxes. However, the summer months are actually the perfect time to make a mid-year.
Thus, between broiling, splashing in the pool and take a family vacation, set aside a few minutes to check these simple
Organize your finances back to your list and you save time and money come tax season.
If you are super organized, you probably already marked and deposited all receipts since January and followed carefully your income and expenses for the year to date. You can even find out exactly where your taxes are currently at.
However, for those of us who are not as prone organizationally, we have to catch up. But rest assured, it is not as difficult to start than you may think. It is as simple as do some sorting, throwing things that you do not need, filing and updating of financial records.
The fight against the value of the expenses of the backlog and revenues of months at this stage of the year will be much easier than waiting until you have the value of a year later. In addition, you are much more likely to remember details of the expenses and other items now compared to next year.
Review your withholding income tax
Whether you are owed money or got a big refund last year declaration of income tax, is now the time to review and adjust your withholding tax on income if you want a different result when you file next year.
Adjust your deductions by completing Form W-4, employee withholding allowance certificate , and change your exemptions accordingly. In general, in order to have less tax withheld from your paycheck, more exemptions are necessary, but for more tax withheld, you'll want to score fewer exemptions on form.
To make it quick and easy to connect to your TaxAct account and click the "Next Year" tab at the top of the page to access the W-4 form. After answering a few questions, you can print your new Form W-4 and give it to your payroll department. Do not send to the IRS.
Continue with
estimated taxesIf you own a business or have substantial income not subject to withholding tax on income, you may have to pay quarterly estimated taxes.
If this is the case, you'll want to pay particular attention to due dates as estimated taxes for the third and fourth quarters of the year are due before the quarters are more. September 15 is the deadline for the third quarter and January 15 is the deadline for the fourth quarter.
Although it may be difficult to find money for the estimated taxes each quarter, it can be even harder to pay the entire amount in a lump sum at tax time. In addition, you will be liable for penalties and interest for late payment at that time also apply.
A good way to track tax on self-employment and other income is to channel the money in a separate bank account as it comes or at least once a month.
Remember your tax benefit for the summer child care
Do you send all children under 13 years old to daycare during the summer because you work Far from home? If so, you may be eligible for dependent care credit for children.
Whether your child goes to day care, day camp or a caregiver to someone's home, you may be eligible for the credit to help offset some of those additional costs Babysitting children. In addition, parents who do not work, but going to school or looking for work, may be eligible for credit.
However, keep in mind that in most cases, you can not take the credit if you send your child tutoring or an overnight camp.
to take advantage of this credit, be sure to save receipts applicable to childcare. This credit can reduce your taxes up to 35 percent of the amount you spend, then it is definitely one you will not want to miss.
Have your children work for your business
One advantage of owning a business is that you can give your own kids a job. If there is something they can do to help, you can pay and deduct wages.
As an added bonus, if your children are under 18, you do not have to worry about Social Security and Medicare taxes.
Your children will be subject to pay taxes on their earnings, but they are almost certainly in a tax bracket lowest income you are.
in fact, if they're just working a few hours in the summer, they probably will not owe any tax on their income at all.
Make-efficient home improvements in energy
Summer is a great time to be outdoors and make your home more efficient for the cold days ahead.
Check with your utility company to see if it offers free energy audits. You can also do research to learn about effective ways to save energy this fall and winter.
If you buy some energy efficient items such as solar hot water heaters, solar electric equipment, small wind turbines, you may qualify for a tax credit up to 30 percent of the total amount . And that includes the cost of on-site preparation and installation at your home.
track and file all applicable receipts so that you are ready to complete the IRS Form 5695, Residential Energy Credits to claim your credit comes tax time.
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